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The social cost of drugs in France in 2010

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Abstract

The social cost of drugs is the monetary cost of both the consequences of their trade and their consumption. In this paper, drugs considered are tobacco and alcohol, which are legal, plus those that are illegal. The social cost is the sum of the external cost: value of loss in quality of life, value of years of life lost and value of loss in productivity, plus public expenditure. Public expenditure consists of public spending on medical care, prevention, and law enforcement, minus savings from unpaid pensions and taxes levied on tobacco and alcohol. The parameters for the calculations have used the recommendations of a French governmental working group (2013) Quinet, L’évaluation socioéconomique des investissements publics [Internet], Centre d’Analyse Stratégique, 2013, http://www.strategie.gouv.fr/sites/strategie.gouv.fr/files/archives/CGSP_Evaluation_socioeconomique_17092013.pdf, and the health data were derived from the scientific literature. The social costs are €122 billion for tobacco, €118 billion for alcohol, and €8.7 billion for illegal drugs. The largest fraction of the costs (53, 56, and 31 %, respectively) derives from the number of deaths, 79,000 for tobacco, 49,000 for alcohol, and 1600 for illegal drugs, given the high cost of a year of life lost (€115,000). The external cost corresponds to 86, 97, and 68 % of the social cost, respectively, for tobacco, alcohol, and illegal drugs. The annual drug-related net expenditure represents €13.9, €3.0, and €2.3 billion, respectively, for tobacco, alcohol, and illegal drugs. The tax revenues on tobacco and alcohol, €10.4 and €3.2 billion, represent less than half of the corresponding healthcare costs, which are €25.9 and €7.7 billion.

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Notes

  1. http://www.insee.fr/fr/themes/document.asp?reg_id=24&ref_id=18715.

  2. The average figure calculated in a very detailed manner by Kopp and Fenoglio [19] has been kept as the basis for calculations. In order to take into account the increase in the number of people receiving care for pathologies caused by tobacco, it has been posited that the number of people receiving care rose at the same rate as the number of deaths. A second corrective has been brought into take account of inflation, which was 18.9 % between 2000 and 2010.

  3. http://www.insee.fr/fr/themes/tableau.asp?reg_id=0&ref_id=NATTEF04571.

  4. Unpublished figure calculated by the OFDT.

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Acknowledgments

The paper presents the conclusions of a report to the Health Ministry (Direction Générale de la Santé). It has been subsidized following a call for tenders from the French observatory for drugs and substance abuse (OFDT).

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Authors and Affiliations

  1. The Paris School of Economics, Centre d’Economie de la Sorbonne, Panthéon-Sorbonne University (Paris I), 106-112 boulevard de l’Hôpital, 75 647, Paris Cedex 13, France

    Pierre Kopp

  2. Centre d’Economie de la Sorbonne, Panthéon-Sorbonne University (Paris I), 106-112 boulevard de l’Hôpital, 75 647, Paris Cedex 13, France

    Marysia Ogrodnik

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  1. Pierre Kopp
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Correspondence to Marysia Ogrodnik.

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Kopp, P., Ogrodnik, M. The social cost of drugs in France in 2010. Eur J Health Econ 18, 883–892 (2017). https://doi.org/10.1007/s10198-016-0835-9

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